Stella has plans to go to an opera and already has a $100 nonrefundable, nonexchangeable, and nontransferable ticket. Now Patrick, whom Stella has wanted to date for a long time, asks her to a concert. Stella would prefer to go to the concert with Patrick and forgo the opera, but she doesn't want to waste the $100 she spent on the opera ticket. From the perspective of an economist, if Stella decides to go to the opera, what has she just done? Incorrectly allowed a sunk cost to influence her decision Correctly ignored a sunk cost Made an optimal choice

Stella has plans to go to an opera and already has a $100 nonrefundable, nonexchangeable, and nontransferable ticket. Now Patrick, whom Stella has wanted to date for a long time, asks her to a concert. Stella would prefer to go to the concert with Patrick and forgo the opera, but she doesn't want to waste the $100 she spent on the opera ticket. From the perspective of an economist, if Stella decides to go to the opera, what has she just done? Incorrectly allowed a sunk cost to influence her decision Correctly ignored a sunk cost Made an optimal choice

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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